In this study, we examine the impact of market competition and firm life cycle on cost stickiness. By using principal component analysis, we develop two different aspects of market competition measure based on segment-level data. Our empirical findings show that competition from existing rivals increases the level of cost stickiness, while competition from potential entrants decreases the level of cost stickiness. In addition, we provide novel evidence showing that the cost stickiness is more pronounced for firms in the early stages than those in the late stages. Furthermore, we document that the effects of market competition and life cycle on cost stickiness vary between followers and leaders under cost stickiness measures. Finally, the findings in the quantile regression analysis support our main results and contribute to understanding the different relationships between cost stickiness, market competition, and life cycle stages at different quantiles.